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Egypt battles for growth, economic stability amid water shortages

Costly development ambitions face multiple challenges
Egypt battles for growth, economic stability amid water shortages
Egypt's Green River

The year 2023 has been quite challenging for economies worldwide. Many countries have experienced significant setbacks, including rising inflation, sluggish growth and the devastating Russian-Ukraine war, which has disrupted global supply chains and caused food shortages. In addition, the United States has faced bank closures, debt ceiling issues, and the looming threat of a recession.

While some regions, like the Gulf Cooperation Council countries, have managed to mitigate the impact through sound economic policies and high oil prices, Egypt has not been so fortunate. The country has been grappling with a high inflation rate, which reached 32.7 percent in May. As a result, Egypt finds itself in a delicate balancing act, aiming to halt the devaluation of its currency while aggressively listing publicly owned companies to improve its fiscal position and meet the requirements of a 46-month $3 billion loan arrangement with the International Monetary Fund.

The country is also dealing with water shortages and, to make matters worse, Egypt and Ethiopia have been at loggerheads in a years-long dispute over the Grand Ethiopian Renaissance Dam (GERD) on the Blue Nile, a tributary of the Nile River, over operation, electricity production and irrigation.

Undeterred despite these adversities, Egypt is currently undertaking two major projects: the Delta project and the Green River. The latter is part of a $58 billion initiative covering an area of 714 square kilometers in the desert known as the New Administrative City, which aims to drive extensive development and growth in the region.

Water is life for Egypt

Egypt has recently implemented a significant plan known as the National Water Resources Plan (NWRP 2037), with a budget of $50 billion. This plan aims to optimize the utilization of the country’s water resources, but it is currently facing major challenges due to the devaluation of the local currency.

In order to safeguard the water and food security of the nation, the Ministry of Water Resources and Irrigation in Egypt is constructing the longest man-made artificial river, which will serve as a crucial water source for irrigating and cultivating a little over 1 million acres within the New Delta project.

Egypt is grappling with water scarcity, with a per capita water share of less than 560 cubic meters per year. The artificial river, spanning approximately 114 kilometers, can generate approximately 10 million cubic meters of water. Engineers with build twelve 12 stations along its banks to facilitate the transportation of agricultural drainage water from the western region of the Nile River to the primary el-Hammam station. The water will be treated at el-Hammam station and subsequently used for irrigation purposes, at an estimated cost of around $2 billion.

Read more: How do we make water sustainable?

Egypt water

Water requirements in Egypt

Although the Nile River meets 97 percent of the country’s water requirements, it is insufficient for agricultural expansion projects. Consequently, Egypt has initiated various wastewater treatment projects. For instance, the Bahr el-Baqar project, which costs approximately $740 million, aims to reclaim around 473,000 acres of land. Similarly, the al-Mahsama water reclamation plant, with a cost of $113 million, transports nearly 1 million cubic meters of treated wastewater a day to Sinai.

These projects have become essential as the Nile River can no longer adequately support the growing population, which has surpassed 100 million people. Egypt’s population is increasing at a rate of one person every 19 seconds, necessitating approximately 114 billion cubic meters of water annually.

To address this challenge, Egypt claims to be working on improving irrigation methods and implementing efficient farming techniques. Furthermore, the country is taking steps to restrict the cultivation of water-intensive crops like rice.

Green River

In the newly constructed urban area of NAC, a remarkable collection of tall buildings will offer breathtaking views of the “Green River.” This remarkable belt of lakes and parks stretches across the desert and runs through the heart of the city, much like the Nile River flows through Cairo.

The development can accommodate over 46 residential districts, providing homes for a staggering 6.5 million people. Spanning an impressive 10,000 kilometers, the smart green city will boast an extensive network of streets, 2,000 educational institutions, 600 hospitals and clinics, a technology and innovation park, and a colossal theme park that will even dwarf Disneyland.

The Green River project was initiated in January 2019 and involves the creation of a 35-kilometer-long canal, connecting various neighborhoods within NAC. Interestingly, state media reported that the project will use water treatment plants within the city rather than relying on fresh water from the Nile.

Tatiana Antonelli Abella, co-chair of MENA Oceans Summit and founder of Goumbook, expressed skepticism about the Green River project’s ambition to construct an artificial system of interconnected rivers, lakes and gardens spanning 35 kilometers in the urban desert landscape.

“The source of the required water in this extremely water-stressed country remains unclear. Water poverty and water equality are serious social concerns in Egypt. Furthermore, the project appears to be pricey with experts estimating the first phase at $500 million, according to state media reporting in 2019, and will likely end up much higher,” she said.

Egypt water

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